Midtown Blogger/Manhattan Valley Follies: Warsaw Voice- Scripps Buying into Poland

The Warsaw Voice » Business » March 17, 2015

Scripps Networks Interactive to buy controlling stake in Polish broadcaster TVN

March 17, 2015

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US media group Scripps Networks Interactive, owner of such brands as Food Network and Travel Channel, will buy a majority stake in TVN SA, Poland’s second-biggest TV broadcaster for EUR 584 million, sides to the deal said in joint releases on Monday.

ITI & Canal+, lead shareholders of TVN agreed to sell their combined 52.7% stake to Scripps. Specifically, IT and Canal+ are selling 100% in N-Vision, a unit a unit of France’s Vivendi SA and ITI Group, which "at the time of the deal settlement will hold directly and indirectly, via Polish Television Holding B.V., about 52.6% of rights shares issued by TVN," the filing reads.

Scripps British unit Southbank media will pay EUR 584 million in cash then additionally assume EUR 300 million of N-Vision’s debt and EUR 540 million of TVN’s and start a mandatory tender offer to raise its stake, Scripps said in a press statement.

ITI and Canal+ had previously flagged their intention to sell. A local daily tagged Scripps last week as the front-runner in the bid. Several weeks prior, a rival daily put German media group Bauer in the lead. Time Warner and Discovery had been much discussed.

A purchase by Scripps would be the least market-changing of the possible outcomes, local analysts had told PAP Polish news agency last week of the latest speculation. Synergies would be "limited in scope" and focused on the handful of opportunities in thematic channels where Scripps, owner of Travel Channel and developer of lifestyle content for TV and Internet, has formed any presence, at least one local told PAP.

Scripps intends to finalize the takeover transaction early in H2 2015, Scripps officials said during a teleconference on Monday.

Scripps expects no cost synergies from the transaction, but views TVN as an opportunity to increase the presence of its TV brands as well as program formats, they said.